The Future of Monetary Policy / Classic Doctrines Overturned
Everyone is hanging on will-she or won't-she raise rates by 25 basis points.
I think this focus misses the more interesting questions for current monetary policy. The last 10 years or so are a remarkable experience, a Michelson-Morley1 moment, which overturn long-held monetary policy doctrines. The plan to raise rates via interest on reserves in a large balance sheet completely changes the basic mechanism by which monetary policy is said to affect the economy.